November 5, 2024 • 9 mins
America's Money Answers Man, Jordan Goodman joined Todd Walker on Monday to discuss various economic issues including the weaker than expected jobs numbers from last week.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Time to check in with America's money answers man, Jordan Goodman.
And on Friday we got the latest jobs numbers, and
I guess the headline to take away was the worst
jobs report in about four years.
Speaker 2 (00:12):
Huh yeah, much lower than expected. The Well Street had
been expecting about one hundred thousand jobs. We got twelve thousand.
That was largely impacted though by the hurricanes affecting Florida
and other states and strikes. We had strikes at Boeing,
the longshoremen and other kinds of things, but it still
was below people's expectations. The unemployment rate remained at four
(00:37):
point one percent, the same as the month before. The
two previous months were revised down very sharply. The September
number went from two hundred and fifty four thousand to
two hundred and twenty three thousand, a loss of thirty
one thousand, and then August went from one hundred and
fifty nine thousand to seventy eight thousand, a loss of
eighty one thousand. So those two months September and August
(01:01):
combined a loss of one hundred and twelve thousand jobs
from one of previously beaten reported So things, Yes, weaker
than people thought on both front there as far as
averaging our early earnings, that was up zero point four,
which is a four percent rate of growth of wage growth,
which is pretty much what it's been lately. So as
(01:22):
far as the specific areas todd so, private sector jobs
were down twenty eight thousand, mining was weak up one
construction up just eight thousand. Manufacturing was down forty six thousand,
so manufacturer's definitely been a week out there. Retail was
down by seven thousand, transportation down four thousand, professional business
(01:47):
services down forty seven thousand. The only two areas of
strength were private education up fifty seven thousand and healthcare
up fifty two thousand. Leisure and hospitality, which had been
early we'd had one hundred one thousand or more jobs
and leisure in hospitality that was down by four thousand.
Government was up by forty thousand, and then the labor
(02:09):
force participation rate went down to tech to sixty two
point six. It had been sixty two point seven. So overall,
I would say, pretty weak jobs report, but it definitely
was affected by the hurricanes and the strikes.
Speaker 1 (02:22):
Sure, but does one famous man once said, well there
they go again. One hundred and twelve thousand. Oopsie there
in two months. It's a pretty big gaff there.
Speaker 2 (02:33):
It was the Labor Department revised earlier in the year.
They'd been revising it upward, but lately every month they've
been revising it downward.
Speaker 1 (02:40):
So really the jobs market, I guess it would characterize
it as weakening.
Speaker 2 (02:49):
Well, yes, but I mean look at the overall Still
we're at four point one percent unemployment, which is still
relatively good, but the number of jobs being created is
going down every month.
Speaker 1 (03:01):
Yeah. Well, of course the number of people entering life
is dropping dramatically. So I guess we're not going to
need as many jobs in the future because we're not
going to have as many people Jordan, and maybe we
should start looking at it that way.
Speaker 2 (03:14):
The new baby we're not replacing our population, although I
guess we're replacing them with immigrants, both legal and illegal.
Speaker 1 (03:21):
Yes, well, that's for another discussion, I guess. So what
we have another report? GDP came in for Q three
at two point eight percent. What about that?
Speaker 2 (03:33):
So that was revised down when it had been three
point one and it was revised down to two point
eight But that's still pretty decent growth. Considering everything we've
been going through here, the consumer spending is what's been strong.
That was up three point seven percent. And then the
inflation report that came in as part of that was
one point five percent inflation at an annual rate, So
(03:54):
that was really quite good. I mean, this is what
the Fed's looking for. All these numbers combined, I think
it's quite clear the Fed Reserve is going to cut
rates another quarter point at their meeting in mid November
right after the election.
Speaker 1 (04:06):
Well, we will certainly look forward to that for sure.
Oil Jordan, I guess we've gotten a retreat here as
Israel launched attacks on Iran but did not hit their
oil facilities. Is that why?
Speaker 2 (04:21):
Yeah, In worry that Israel was going to hit their
oil facilities, oil went up from about sixty seven to
seventy five, and last week it went down from seventy
five back to sixty seven when Israel basically hit the
military facilities and not the oil facilities. Iran's probably going
to respond again, and Israel's probably going to respond again.
(04:42):
I think we've got a pretty big tit for tat.
At some point they may hit the oil facilities, but
right now they didn't. Some oil prices have been falling.
Speaker 1 (04:51):
We're talking with America's Money Answers man, Jordan Goodman. Of
course you can reach him via email Jordan at Moneyanswers
dot com. In trouble. There's a new vote coming up here.
I think today Jordan about their latest contract proposal. But
they're striking workers, but they're looking to raise nineteen billion
(05:11):
a new stock to make up for six billion in
losses and the strike bringing even more pain. Tough to
be at Boeing right now.
Speaker 2 (05:21):
Yeah, millions of dozen losses per day every time they
don't get planes built. This will be the third vote.
The two previous votes were soundly defeated by the rank
and file, and it's just trouble all around. So Bowe
is going to be issuing nineteen billion dollars of new
stock at a very low price in order to have
(05:43):
liquidity to make it through this. The workers want a pension,
Well that's nice, but I don't think a new pension
has been created in decades in this country, so I
don't think they're going to get it. So let's help
the strike ends. Give up an unreasonable demand. As it is,
they've achieved thirty pay increase, which I think most of
it would think is pretty good.
Speaker 1 (06:04):
Right, well, it just shows the forward thinking of the unions.
They'll propose and demand something that hasn't been done for
decades and then let that screw things up. That's that's
having an open mind for sure, speaking of unions screwing
things up. But let's go to the auto industry. Car makers,
the losing money on electric cars, the mandates are having
(06:27):
its effect that it was intended trying to bankrupt these
companies Forward among others. Cutting back a demand for evs
is weak. It's just a boondoggle here. Jordan.
Speaker 2 (06:39):
Yeah, well, the idea was to completely convert the fleet
from gas power to electric overuse by mandate. General Motors
says it's going to turn its entire fleet to electric
by twenty thirty five. But meanwhile, the consumer has been
forgotten off this. And yeah, some people like to buy electrics,
but I think it's still about two percent of the
(06:59):
over all car markets, so it's it's relatively small. So Ford,
for example, stopping electric production of the F one fifty
Volkswagen is going to close three factories because they've had
very weak demand there. So you can mandate things by
the government but the consumer has to go along, and
(07:21):
so far they haven't been.
Speaker 1 (07:23):
Yeah, and they're probably not going to. But we'll just
keep trying to make fetch happen, as they say. Meanwhile,
a big tech company is doing well, Alphabet, Meta, Microsoft,
have no problems there.
Speaker 2 (07:36):
Huh, very strong numbers across the board last week. Yeah.
So Alphabet, which is Google, their sales were up fifteen
percent to eighty eight billion dollars in the quarter. It's
just amazing how much one of these people make. Meta
which is Facebook, their sales are up nineteen percent to
about forty billion dollars in a quarter, and Microsoft was
(07:57):
up sixteen percent five billion dollars in the quarter. Some
of that are artificial intelligence related now, so they've made
huge investments in all these chips and data centers, but
now they're charging for it in some ways, so that
the very beginnings of getting a return on their investment
for artificial intelligence is actually happening now.
Speaker 1 (08:18):
All right, Jordan, we have election day of course tomorrow,
and there are major differences between Trump and Harris and
what their administrations would do. I heard Kamala late last
week talking about she would come up with the first
ever law against grocery price gouging, which of course we
already have a law against price gouging. But she's not
very bright point out some differences here between the two.
Speaker 2 (08:44):
Two very very very different views on the economy and
what to do about. Trump in general wants to cut
taxes both corporate and individual, incentivize the oil industry, protect
American industries with tariffs taris Basically she wants to do
the other thing. She wants to raise taxes, particular in
high income people and corporations, raise the corporate rate up
(09:06):
to twenty eight percent, various kinds of trade policies as well.
They just have two completely different views on the way
things are going to go. So we'll have to see
what happens tomorrow. I'm not sure we're going to get
a result by tomorrow night, actually, And it also makes
a big difference as to what happens in the Congress
and whether the Democrats or Republicans control the House and
(09:28):
or the Senator. If we have a split Congress, I
don't think either side is going to have a big
majority to be able to do what they want. It's
probably still going to be very close the country when
you get down to it's about fifty to fifty one
WA or the other, so it depends on who shows
up who actually votes as to which way things go
with the election tomorrow.
Speaker 1 (09:46):
Jordan Goodman is an America's money answers man. We'll hopefully
have it all sorted out by the time we visit
with you next week, Jordan.
Speaker 2 (09:53):
I hope. So we'll have to see
Time to check in with America's money answers man, Jordan Goodman.
And on Friday we got the latest jobs numbers, and
I guess the headline to take away was the worst
jobs report in about four years.
Speaker 2 (00:12):
Huh yeah, much lower than expected. The Well Street had
been expecting about one hundred thousand jobs. We got twelve thousand.
That was largely impacted though by the hurricanes affecting Florida
and other states and strikes. We had strikes at Boeing,
the longshoremen and other kinds of things, but it still
was below people's expectations. The unemployment rate remained at four
(00:37):
point one percent, the same as the month before. The
two previous months were revised down very sharply. The September
number went from two hundred and fifty four thousand to
two hundred and twenty three thousand, a loss of thirty
one thousand, and then August went from one hundred and
fifty nine thousand to seventy eight thousand, a loss of
eighty one thousand. So those two months September and August
(01:01):
combined a loss of one hundred and twelve thousand jobs
from one of previously beaten reported So things, Yes, weaker
than people thought on both front there as far as
averaging our early earnings, that was up zero point four,
which is a four percent rate of growth of wage growth,
which is pretty much what it's been lately. So as
(01:22):
far as the specific areas todd so, private sector jobs
were down twenty eight thousand, mining was weak up one
construction up just eight thousand. Manufacturing was down forty six thousand,
so manufacturer's definitely been a week out there. Retail was
down by seven thousand, transportation down four thousand, professional business
(01:47):
services down forty seven thousand. The only two areas of
strength were private education up fifty seven thousand and healthcare
up fifty two thousand. Leisure and hospitality, which had been
early we'd had one hundred one thousand or more jobs
and leisure in hospitality that was down by four thousand.
Government was up by forty thousand, and then the labor
(02:09):
force participation rate went down to tech to sixty two
point six. It had been sixty two point seven. So overall,
I would say, pretty weak jobs report, but it definitely
was affected by the hurricanes and the strikes.
Speaker 1 (02:22):
Sure, but does one famous man once said, well there
they go again. One hundred and twelve thousand. Oopsie there
in two months. It's a pretty big gaff there.
Speaker 2 (02:33):
It was the Labor Department revised earlier in the year.
They'd been revising it upward, but lately every month they've
been revising it downward.
Speaker 1 (02:40):
So really the jobs market, I guess it would characterize
it as weakening.
Speaker 2 (02:49):
Well, yes, but I mean look at the overall Still
we're at four point one percent unemployment, which is still
relatively good, but the number of jobs being created is
going down every month.
Speaker 1 (03:01):
Yeah. Well, of course the number of people entering life
is dropping dramatically. So I guess we're not going to
need as many jobs in the future because we're not
going to have as many people Jordan, and maybe we
should start looking at it that way.
Speaker 2 (03:14):
The new baby we're not replacing our population, although I
guess we're replacing them with immigrants, both legal and illegal.
Speaker 1 (03:21):
Yes, well, that's for another discussion, I guess. So what
we have another report? GDP came in for Q three
at two point eight percent. What about that?
Speaker 2 (03:33):
So that was revised down when it had been three
point one and it was revised down to two point
eight But that's still pretty decent growth. Considering everything we've
been going through here, the consumer spending is what's been strong.
That was up three point seven percent. And then the
inflation report that came in as part of that was
one point five percent inflation at an annual rate, So
(03:54):
that was really quite good. I mean, this is what
the Fed's looking for. All these numbers combined, I think
it's quite clear the Fed Reserve is going to cut
rates another quarter point at their meeting in mid November
right after the election.
Speaker 1 (04:06):
Well, we will certainly look forward to that for sure.
Oil Jordan, I guess we've gotten a retreat here as
Israel launched attacks on Iran but did not hit their
oil facilities. Is that why?
Speaker 2 (04:21):
Yeah, In worry that Israel was going to hit their
oil facilities, oil went up from about sixty seven to
seventy five, and last week it went down from seventy
five back to sixty seven when Israel basically hit the
military facilities and not the oil facilities. Iran's probably going
to respond again, and Israel's probably going to respond again.
(04:42):
I think we've got a pretty big tit for tat.
At some point they may hit the oil facilities, but
right now they didn't. Some oil prices have been falling.
Speaker 1 (04:51):
We're talking with America's Money Answers man, Jordan Goodman. Of
course you can reach him via email Jordan at Moneyanswers
dot com. In trouble. There's a new vote coming up here.
I think today Jordan about their latest contract proposal. But
they're striking workers, but they're looking to raise nineteen billion
(05:11):
a new stock to make up for six billion in
losses and the strike bringing even more pain. Tough to
be at Boeing right now.
Speaker 2 (05:21):
Yeah, millions of dozen losses per day every time they
don't get planes built. This will be the third vote.
The two previous votes were soundly defeated by the rank
and file, and it's just trouble all around. So Bowe
is going to be issuing nineteen billion dollars of new
stock at a very low price in order to have
(05:43):
liquidity to make it through this. The workers want a pension,
Well that's nice, but I don't think a new pension
has been created in decades in this country, so I
don't think they're going to get it. So let's help
the strike ends. Give up an unreasonable demand. As it is,
they've achieved thirty pay increase, which I think most of
it would think is pretty good.
Speaker 1 (06:04):
Right, well, it just shows the forward thinking of the unions.
They'll propose and demand something that hasn't been done for
decades and then let that screw things up. That's that's
having an open mind for sure, speaking of unions screwing
things up. But let's go to the auto industry. Car makers,
the losing money on electric cars, the mandates are having
(06:27):
its effect that it was intended trying to bankrupt these
companies Forward among others. Cutting back a demand for evs
is weak. It's just a boondoggle here. Jordan.
Speaker 2 (06:39):
Yeah, well, the idea was to completely convert the fleet
from gas power to electric overuse by mandate. General Motors
says it's going to turn its entire fleet to electric
by twenty thirty five. But meanwhile, the consumer has been
forgotten off this. And yeah, some people like to buy electrics,
but I think it's still about two percent of the
(06:59):
over all car markets, so it's it's relatively small. So Ford,
for example, stopping electric production of the F one fifty
Volkswagen is going to close three factories because they've had
very weak demand there. So you can mandate things by
the government but the consumer has to go along, and
(07:21):
so far they haven't been.
Speaker 1 (07:23):
Yeah, and they're probably not going to. But we'll just
keep trying to make fetch happen, as they say. Meanwhile,
a big tech company is doing well, Alphabet, Meta, Microsoft,
have no problems there.
Speaker 2 (07:36):
Huh, very strong numbers across the board last week. Yeah.
So Alphabet, which is Google, their sales were up fifteen
percent to eighty eight billion dollars in the quarter. It's
just amazing how much one of these people make. Meta
which is Facebook, their sales are up nineteen percent to
about forty billion dollars in a quarter, and Microsoft was
(07:57):
up sixteen percent five billion dollars in the quarter. Some
of that are artificial intelligence related now, so they've made
huge investments in all these chips and data centers, but
now they're charging for it in some ways, so that
the very beginnings of getting a return on their investment
for artificial intelligence is actually happening now.
Speaker 1 (08:18):
All right, Jordan, we have election day of course tomorrow,
and there are major differences between Trump and Harris and
what their administrations would do. I heard Kamala late last
week talking about she would come up with the first
ever law against grocery price gouging, which of course we
already have a law against price gouging. But she's not
very bright point out some differences here between the two.
Speaker 2 (08:44):
Two very very very different views on the economy and
what to do about. Trump in general wants to cut
taxes both corporate and individual, incentivize the oil industry, protect
American industries with tariffs taris Basically she wants to do
the other thing. She wants to raise taxes, particular in
high income people and corporations, raise the corporate rate up
(09:06):
to twenty eight percent, various kinds of trade policies as well.
They just have two completely different views on the way
things are going to go. So we'll have to see
what happens tomorrow. I'm not sure we're going to get
a result by tomorrow night, actually, And it also makes
a big difference as to what happens in the Congress
and whether the Democrats or Republicans control the House and
(09:28):
or the Senator. If we have a split Congress, I
don't think either side is going to have a big
majority to be able to do what they want. It's
probably still going to be very close the country when
you get down to it's about fifty to fifty one
WA or the other, so it depends on who shows
up who actually votes as to which way things go
with the election tomorrow.
Speaker 1 (09:46):
Jordan Goodman is an America's money answers man. We'll hopefully
have it all sorted out by the time we visit
with you next week, Jordan.
Speaker 2 (09:53):
I hope. So we'll have to see
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